It can be said that things weren’t all that bad for canola during the 2019-20 marketing year.
Given the grim outlook there was for canola over the fall and winter, it’s been a decent marketing year overall for the crop. Prices dropped because of China, but strong exports elsewhere, plus a larger domestic crush, combined to avert prices from falling further.
Canola exports shot up in 2019-20 thanks in good part to reduced rapeseed production in the European Union and increased demand from other countries. With the Canadian Grain Commission’s preliminary numbers out for the year, exports exceeded 10.12 million tonnes, for a 9.1 per cent increase from 2018-19. Coupled with that was a strong increase in domestic usage at 10.37 million tonnes, for a 7.4 per cent hike over the previous year.
Despite spring starting cooler than normal, precipitation and heat arrived just at the right time to provide a good boost to canola’s development.
With the harvest for the 2020-21 crop year just starting, the FarmLink farm tour in the last two weeks of July estimated canola should yield 42.9 bushels per acre and production should run up to 20.2 million tonnes. That would top Statistics Canada’s 2019-20 numbers of 40 bu./ac. and 18.65 million tonnes.
With Statistics Canada issuing its report at the end of this month, we should get a good idea of how 2019-20 will end and what’s in store for 2020-21.